JUPITER, Fla.--(BUSINESS WIRE)--Apr 24, 2007 - Dyadic
International, Inc. (AMEX:DIL) today announced that it has
discovered potentially material operational and financial
improprieties at its Hong Kong and mainland China operations
following the recent death of the managing director of its Hong
Kong operations.

The Company's audit committee, upon the advice of counsel, has
initiated an independent investigation of the facts surrounding
these improprieties. Pending the completion of the investigation,
the Company's chief executive officer and chairman of its board of
directors, Mark A. Emalfarb, will be on a leave of absence from all
of his positions and offices with the Company, and he has also
taken a leave of absence from his position as a member and chairman
of the board.

Wayne Moor, the Company's chief financial officer, has assumed
the position of Chief Executive Officer on an interim basis during
the pendency of the investigation.

Dr. Glenn E. Nedwin, the Company's chief scientific officer and
a member of the board of directors, has assumed the additional
responsibilities of President on an interim basis during the
pendency of the investigation.

Lisa De La Pointe, the Company's director of financial
reporting, has assumed the additional responsibilities of Chief
Financial Officer on an interim basis during the pendency of the
investigation.

As a result of these improprieties, the Company will not be in a
position to make a timely filing with the Securities and Exchange
Commission of its Quarterly Report on Form 10-QSB for the quarter
ended March 31, 2007, nor will it be in a position to announce its
operational and financial results for the quarter. The Company
expects to file the Quarterly Report as soon as practicable.

On April 23, 2007, the Company's board of directors, upon the
recommendation of the audit committee, determined that the
Company's previously filed financial statements, including those
contained in its Annual Reports on Form 10-KSB and Quarterly
Reports on Form 10-QSB, as filed with the SEC, should no longer be
relied upon.

The Company has notified and is working with Ernst & Young
LLP, its independent registered public accounting firm, to address
these matters.

The Company is in discussions with the American Stock Exchange
regarding the continued listing of its shares; however, it
anticipates that the Exchange may, in accordance with its rules,
initiate delisting proceedings against the Company. Furthermore,
the Company has been notified by the Exchange that the trading in
its shares will continue to be halted until such time as additional
information regarding these matters is publicly available.

About Dyadic

Dyadic International, Inc., based in Jupiter, Florida, with
operations in the United States, Hong Kong and mainland China,
Poland and The Netherlands, is a global biotechnology company that
uses its patented and proprietary technologies (the "Dyadic
Platform Technology") to conduct research and development
activities for the discovery, development, and manufacture of
products and enabling solutions to the bioenergy, industrial enzyme
and pharmaceutical industries.

Cautionary Statement for Forward-Looking Statements

Certain statements contained in this press release are
"forward-looking statements." These forward-looking statements
involve risks and uncertainties that could cause our actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. For a discussion of
these risks and uncertainties, please see our filings from time to
time with the Securities and Exchange Commission, which are
available free of charge on the SEC's web site at
http://www.sec.gov, including our Annual Report on Form 10-KSB for
the year ended December 31, 2006, and our subsequent filings with
the SEC. Except as required by law, we expressly disclaim any
intent or obligation to update any forward-looking statements.